Seeking Alpha
Value, growth, long-term horizon, medium-term horizon
Profile| Send Message|
( followers)  

If you like following the buying trends of “smart money” investors like hedge funds, you may be interested in this list.

We ran a screen on small-cap stocks, with market caps under $500 million, for those seeing the most buying interest from institutional investors over the current quarter. Institutional investors include hedge funds, mutual funds, and pension funds among others.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.‬

We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.

Do you think hedge funds are calling it right on these names? Use this list as a starting point for your own analysis.

List sorted by net institutional purchases as a percent of share float.

1. Merge Healthcare Incorporated (NASDAQ:MRGE): Provides health information technology interoperability solutions. Market cap of $489.60M. Net institutional shares purchased over the current quarter at 6.5M, which is 24.64% of the company's 26.38M share float. The stock has had a couple of great days, gaining 15.35% over the last week.

2. E-Commerce China Dangdang Inc. (NYSE:DANG): Operates as a business-to-consumer e-commerce company in the People's Republic of China. Market cap of $374.15M. Net institutional shares purchased over the current quarter at 5.3M, which is 19.03% of the company's 27.85M share float. The stock is currently stuck in a downtrend, trading 11.11% below its SMA20, 14.18% below its SMA50, and 64.73% below its SMA200. The stock has performed poorly over the last month, losing 32.28%.

3. Endocyte, Inc. (NASDAQ:ECYT): Engages in developing targeted therapies for the treatment of cancer and inflammatory diseases. Market cap of $367.76M. Net institutional shares purchased over the current quarter at 5.8M, which is 18.30% of the company's 31.70M share float.

4. KIT digital, Inc. (OTC:KITD): Provides cloud-based video management solutions for multi-screen delivery worldwide. Market cap of $411.75M. Net institutional shares purchased over the current quarter at 7.3M, which is 17.87% of the company's 40.86M share float. The stock is a short squeeze candidate, with a short float at 28.96% (equivalent to 15.29 days of average volume). It's been a rough couple of days for the stock, losing 6.3% over the last week.

5. Safeguard Scientifics, Inc. (NYSE:SFE): A private equity and venture capital firm. Market cap of $349.13M. Net institutional shares purchased over the current quarter at 3.0M, which is 15.58% of the company's 19.25M share float. The stock is a short squeeze candidate, with a short float at 9.6% (equivalent to 15.62 days of average volume). The stock has had a couple of great days, gaining 11.66% over the last week.

6. ICG Group, Inc. (NASDAQ:ICGE): ICG Group, Inc. (NYSE:ICG) acquires and builds SaaS and technology-enabled business
process outsourcing (NYSE:BPO) companies that improve the productivity and efficiency of their business customers. As of September 30, 2011, the Company held ownership interests in 7 companies that it considers its partner companies. It has two business segments: core and venture. The core reporting segment includes the companies in which management takes a very active role in providing strategic direction and management
assistance. ICG also owns substantial minority equity positions in its other core companies, called “equity core companies.” In addition, ICG holds venture interests in companies to which the Company generally devotes less capital and therefore holds relatively smaller ownership stakes. Market cap of $322.44M. Net institutional shares purchased over the current quarter at 5.1M, which is 15.01% of the company's 33.97M share float. The stock has had a couple of great days, gaining 5.77% over the last week. The stock has performed poorly over the last month, losing 19.91%.

7. Silicon Graphics International Corp. (NASDAQ:SGI): Focuses on helping customers solve their technology challenges by delivering clustered and high-performance computing and storage solutions, and software and services. Market cap of $471.17M. Net institutional shares purchased over the current quarter at 3.6M, which is 12.40% of the company's 29.04M share float. The stock is a short squeeze candidate, with a short float at 27.77% (equivalent to 14.15 days of average volume). The stock has had a couple of great days, gaining 6.04% over the last week.

8. HFF Inc. (NYSE:HF): Provides commercial real estate and capital markets services to the commercial real estate industry in the United States. Market cap of $403.70M. Net institutional shares purchased over the current quarter at 3.4M, which is 11.93% of the company's 28.51M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 2.44). The stock has had a couple of great days, gaining 5.25% over the last week.

9. China Kanghui Holdings (NYSE:KH): Develops, manufactures, and markets orthopedic implants and associated instruments. Market cap of $356.09M. Net institutional shares purchased over the current quarter at 1.1M, which is 11.41% of the company's 9.64M share float. The stock is a short squeeze candidate, with a short float at 12.72% (equivalent to 27.11 days of average volume). The stock has had a couple of great days, gaining 5.03% over the last week.

10. Dynavax Technologies Corporation (NASDAQ:DVAX): A clinical-stage biopharmaceutical company, discovers and develops novel products to prevent and treat infectious diseases. Market cap of $359.45M. Net institutional shares purchased over the current quarter at 10.7M, which is 9.04% of the company's 118.32M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 2.65). The stock is a short squeeze candidate, with a short float at 9.37% (equivalent to 9.87 days of average volume). The stock has had a couple of great days, gaining 5.78% over the last week.

11. Stamps.com Inc. (NASDAQ:STMP): Provides Internet-based postage solutions. Market cap of $410.82M. Net institutional shares purchased over the current quarter at 1.1M, which is 8.89% of the company's 12.38M share float. The stock has performed poorly over the last month, losing 15.94%.

12. Advanced Energy Industries, Inc. (NASDAQ:AEIS): Designs, manufactures, sells, and supports industrial power conversion products that transform power into various usable forms. Market cap of $435.73M. Net institutional shares purchased over the current quarter at 3.1M, which is 8.33% of the company's 37.23M share float. The stock is a short squeeze candidate, with a short float at 5.99% (equivalent to 5.46 days of average volume). The stock has had a couple of great days, gaining 14.06% over the last week.

13. Simcere Pharmaceutical Group. (NYSE:SCR): Develops, manufactures, and markets branded generic and proprietary pharmaceuticals in China. Market cap of $402.63M. Net institutional shares purchased over the current quarter at 1.2M, which is 8.21% of the company's 14.62M share float. The stock is currently stuck in a downtrend, trading 7.41% below its SMA20, 14.1% below its SMA50, and 29.48% below its SMA200. The stock has performed poorly over the last month, losing 18.27%.

14. Presidential Life Corp. (NASDAQ:PLFE): Engages in the marketing and sale of various fixed annuity, life insurance, and accident and health insurance products in the United States. Market cap of $302.21M. Net institutional shares purchased over the current quarter at 2.0M, which is 8.03% of the company's 24.91M share float. The stock has had a couple of great days, gaining 6.13% over the last week.

15. Keynote Systems Inc. (NASDAQ:KEYN): Provides Internet and mobile cloud monitoring solutions worldwide. Market cap of $318.03M. Net institutional shares purchased over the current quarter at 1.0M, which is 7.58% of the company's 13.19M share float. The stock is currently stuck in a downtrend, trading 7.96% below its SMA20, 14.23% below its SMA50, and 11.56% below its SMA200. The stock has performed poorly over the last month, losing 22.89%.

16. MagnaChip Semiconductor Corporation (NYSE:MX): Designs and manufactures analog and mixed-signal semiconductor products for high-volume consumer applications. Market cap of $315.27M. Net institutional shares purchased over the current quarter at 1.2M, which is 7.48% of the company's 16.05M share float. The stock has had a couple of great days, gaining 5.39% over the last week.

17. Newcastle Investment Corp. (NYSE:NCT): Operates as a real estate investment and finance company that invests in and manages a portfolio consisting primarily of real estate securities. Market cap of $468.05M. Net institutional shares purchased over the current quarter at 7.5M, which is 7.37% of the company's 101.71M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 3.39). The stock has had a couple of great days, gaining 5.7% over the last week.

18. CoreSite Realty Corporation (NYSE:COR): Operates as real investment trust in the United States. Market cap of $332.49M. Net institutional shares purchased over the current quarter at 1.4M, which is 7.28% of the company's 19.24M share float. The stock has gained 33.36% over the last year.

19. Horsehead Holding Corp. (NASDAQ:ZINC): Produces and sells specialty zinc and zinc-based products in North America. Market cap of $405.97M. Net institutional shares purchased over the current quarter at 3.1M, which is 7.15% of the company's 43.34M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 2.47). The stock is a short squeeze candidate, with a short float at 8.99% (equivalent to 7.22 days of average volume). The stock has had a couple of great days, gaining 23.37% over the last week.

20. Virtusa Corp. (NASDAQ:VRTU): Provides information technology (IT) consulting, technology implementation, and application outsourcing services in North America, Europe, the Middle East, India, and Sri Lanka. Market cap of $404.68M. Net institutional shares purchased over the current quarter at 1.3M, which is 6.54% of the company's 19.89M share float. The stock has had a couple of great days, gaining 14.64% over the last week.

*Institutional data sourced from Fidelity, all other data sourced from Finviz.

Source: 20 Small Cap Stocks That Hedge Funds Are Buying